sUSDe distributions were completed today equating to a 33.26% APY which mirrored the APY generated by all protocol backing assets of 33.26% APY.

For absolute clarity: every dollar of value accrued to the Protocol from the assets backing the staked USDe were transferred in full to the sUSDe staking contract.

The remaining protocol yield generated from the assets backing unstaked USDe was sent to the reserve fund.

Yield Payment Breakdown

1. Protocol APY = 33.26%

2. Average USDe balance for the week = $435m

3. Total protocol yield = $2.415m

4. Average % of USDe staked over the week (changes daily) = 44%

5. Transfer to sUSDe contract to mirror Protocol APY = $1.07m

6. Transfer to reserve fund: $1.35m

7. sUSDe accrues equivalent to Protocol APY = 33.26%

Summary

Today, the reserve fund stands at $11.8m after two transfers:

1. 8m additional USDC from Labs' recently announced fundraising was transferred to the reserve fund, bringing the total transferred to 10m USDC.

2. 1.35m USDC relating to yield generated by the protocol backing assets was transferred into the reserve fund.

These transfers represent the initial bootstrapping of the protocol reserve fund to bolster the protocol’s liquidity buffer, and serve as the first line of defense in the event of any prolonged, significant negative funding scenarios.

The $9.35m of transfers brings the overall reserve fund to a size of $11.8m, and this will continue to be built up through the course of the Shard Campaign.

The reserve fund address is here:

0x2b5ab59163a6e93b4486f6055d33ca4a115dd4d5 with ENS ethenainsurancefund.eth

The reserve fund balance can also be tracked on our dashboards below:

We hope adding this margin of safety from Labs’ equity raise proceeds demonstrates our belief in USDe, commitment to supporting a more robust product, and commitment to supporting the ecosystem until such time that the protocol governance and administration is more decentralized and can play a role in administering the size, composition and intended use of this pool of capital.

Asset Composition

Asset composition of the reserve fund is a decision making process we will look to decentralize in the near future.

Reserve Fund Take Rate After the Shard Campaign

After the shard campaign, we will release our plan for the reserve fund take rate going forward and will look to guidance from the community here.

Any communication regarding reserve fund take rates will come well in advance of yield payments after the shard campaign.

We want to thank you again for your support, and emphasize again that the intention is to manage the roll out of the product as securely as possible. We will ensure all communication of any changes regarding the reserve fund are made clear well in advance and executed transparently onchain.